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Historic tax credit program partially restored

A moratorium on a wildly popular historic tax credit program that became far more expensive than predicted is being partially lifted after just three weeks, the head of Wisconsin's economic development agency told lawmakers Monday.

Historic tax credit program partially restored

MADISON – A moratorium on a wildly popular historic tax credit program that became far more expensive than predicted is being partially lifted after just three weeks, the head of Wisconsin's economic development agency told lawmakers Monday.

While the program will restart for buildings that meet criteria for being designated as historic, the moratorium will remain in effect for buildings that don't have that certification, said Mark Maley, spokesman for the Wisconsin Economic Development Corporation.

"We want to focus on things that are truly historic," Maley said.

The Legislature, with broad bipartisan support, last year doubled the size of the credit to 20 percent of rehabilitation costs and expanded the program to include non-historic buildings built before 1936. The Legislature did not place a cap on how many credits could be handed out.

The moratorium was put in place on June 23 because $35 million in tax breaks for qualified projects had already been approved, even though only $4 million were expected to be handed out in the first year.

Of that $35 million, $15 million went to non-historic buildings while $20 million went to those certified as historic, Maley said.

The tax credits for historic buildings far exceeded estimates and "it's going to continue to exceed it" now that the moratorium on that part of the program is being lifted, Maley said.

The decision to partially lift the moratorium, after initially saying it would remain in effect until at least next year, came after discussions with developers, local officials and the state Historical Society, said WEDC Secretary and CEO Reed Hall.

The moratorium on buildings certified as historic can be lifted because of the "rigorous application process" required by the State Historic Preservation Officer and the National Park Service prior to seeking state credits, Hall told co-chairs of the Legislature's budget committee in a letter Monday.

Gov. Scott Walker, who is running for re-election this year, touted news of the program re-starting saying, "worthwhile projects can now move forward to help grow local economies and revitalize communities throughout our state."

Walker, in his release praising the news, did not mention that only a portion of the credit was being reinstated.

Hall told lawmakers that WEDC plans to consult with Walker, the National Trust for Historic Preservation, the state Historical Society, and others to discuss possible changes to the program next year.

To inform that discussion, Hall said WEDC will be collecting additional information about projects receiving the tax breaks, including short- and long-term employment projections, local participation, and tax impact.